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Bitcoin price tags $69K as BlackRock enhances Wall Street’s presence in BTC market

|ByLockridge Okoth

  • Bitcoin price remains above the November 2021 supply zone, extending from $58,375 to $65,518.
  • BlackRock has expanded its list of authorized participants, drawing more players in the BTC ETF market.
  • BTC’s 60-day correlation with altcoins has fallen to multi-year lows in Q1 2024 relative to the same periods in 2023 and 2022.

Bitcoin (BTC) price made an attempt north into the weekend, breaking past the $68,000 threshold. Whether this directional bias will be sustained remains on the balance, with analysts anticipating a correction before the next leg north. Meanwhile, reports indicate that more players are coming into the ETF scene thanks to BlackRock. 

Also Read: Bitcoin Weekly Forecast: Short-term holders add 1.12 million BTC, what does this mean?

BlackRock increases Wall Street’s presence in Bitcoin market

Bitcoin price forged passed the $68,000 threshold on Friday, going as high as to top out at $68,756 before a correction. It came on the same day as the US unemployment rate data, with the initial response being terrible.

However, the sentiment was improved by reports that BlackRock, which issues the IBIT exchange-traded fund (ETF) product, is bringing more players to the scene.

Specifically, the ETF issuer has added Goldman Sachs, Citadel, UBS and Citigroup to its BTC ETF, the IBIT, as authorized participants (AP). Meanwhile, and as reported, the biggest banks are reaching out to Bitcoin miners directly to buy Bitcoin because of "supply shortages on exchanges," according to the CEO of Hut8 Mining, Asher Genoot. While banks approach miners, cryptocurrency brokerage Genesis has finished selling $2.1 billion of its Grayscale Bitcoin ETF holdings.

Elsewhere, crypto exchange Coinbase says Bitcoin “dips are likely to be more aggressively bought” now because of new investors demanding to own digital gold (BTC). This is evidence of a possible supply shock. Adding to this, data according to Kaiko Research shows that in the first quarter of 2024, Bitcoin price’s 60-day correlation with altcoins has fallen to multi-year lows compared to the same period in 2023 and 2022.

Bitcoin price outlook as markets head into the weekend

Bitcoin price is holding above the weekly supply zone between $58,375 and $65,518. It sits on immediate support due to the 200-day Exponential Moving Average (EMA). If the bulls are able to haul BTC above the $69,000 threshold, it could encourage more buying pressure, sending the pioneer cryptocurrency to reclaim its $73,777 peak.

In a highly bullish case, Bitcoin price could clear the peak and potentially go as high as $75,000.

The position of the Relative Strength Index (RSI) well above the 50 mean level is bullish and is reinforced by the position of the Awesome Oscillator (AO) and Moving Average Convergence Divergence (MACD) indicators in positive territory.

BTC/USDT 1-week chart

If sellers attempt to play, however, and are able to haul Bitcoin price below the midline of the supply zone at $61,947, a close below this level would confirm a continuation of the downtrend. In such a case, Bitcoin price could provide another buying opportunity around the $60,000 threshold or below it. 

Bitcoin, altcoins, stablecoins FAQs

Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.

Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.

Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.

Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.

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